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2020 Investment Thread

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It's like a game of musical chairs where when the music stops playing and one person is missing a chair, they just walk around and pull everyone else's chair out from under them.

The music doesn't start again until everyone is on the ground.
 
scootergmc said:
Margin Call is a great movie.
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Very good movie, I liked how it alluded to the brain drain of intelligent, highly educated people in analytical fields, being drawn into the gambling/Ponzi scheme of wall street due to the relative compensation. More than a bit of societal waste in my opinion.
 
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in crypto news, Ripple (the company behind XRP the token) is being sued by the Securities and Exchange Commision (SEC) over the illegal sales of securities (xrp). Which in turn would be a landmark case for defining the asset class that certain digital tokens fall into (not all digital tokens are created equal). It lost about 50% of it's value in the past 2-3 days with its peak loss around 65%. i made a few trades on the volatility and now my 2020 taxes are stupid looking lol...
 
afm199 said:
2020 has been such a good year for investment that it almost makes me think I know what I am doing, lol.

I've made that mistake before.
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Yep. :laughing BTDT

That can be an expensive trap to fall into.
 
Caddywumpus said:
Roth ira...

My wife and I are looking to fully fund a roth this year... What are the best ones for self directed trading? Low fees ect
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Only bummer with a Roth IRA is the income limits to fully take advantage

-- Less than $196,000 modified adjusted gross income - Married and filing a joint tax return
-- Less than $124,000 - Single, ect.

There is a back door Roth IRA, I believe.
 
There is, but for life of me I can't figure out if it's taxable if you deposit in to ira after tax and convert to roth. I think in theory only gains are taxable on conversion, but every time I tried through turbo tax it counted whole thing.

There is also mega back door roth ira conversion, but that's through employer.
 
UDRider said:
There is, but for life of me I can't figure out if it's taxable if you deposit in to ira after tax and convert to roth. I think in theory only gains are taxable on conversion, but every time I tried through turbo tax it counted whole thing.

There is also mega back door roth ira conversion, but that's through employer.
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Any conversion from an IRA is automatically taxed if converted to a Roth. It's just how the game is played.

Why? Because IRA contributions are always tax free. If you contribute to an IRA, you get the automatic tax break. When you choose to move to a ROTH, you are taxed on every penny you convert.

I've done a bunch of conversions. Always taxable.

I started contributing to IRA's when the law passed, and to a ROTH when it started.

I have always been utterly delighted that I did so. My IRA's now are about 1/2 the amount of my margin account, and make me smile.
 
afm199 said:
Any conversion from an IRA is automatically taxed if converted to a Roth. It's just how the game is played.

Why? Because IRA contributions are always tax free. If you contribute to an IRA, you get the automatic tax break. When you choose to move to a ROTH, you are taxed on every penny you convert.

I've done a bunch of conversions. Always taxable.

I started contributing to IRA's when the law passed, and to a ROTH when it started.

I have always been utterly delighted that I did so. My IRA's now are about 1/2 the amount of my margin account, and make me smile.
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I am contributing to regular ira in after tax dollars. I am over the income limit, so can't use the contribution as a deduction.
 
UDRider said:
I am contributing to regular ira in after tax dollars. I am over the income limit, so can't use the contribution as a deduction.
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I would assume that you would get taxed again when converting it to a Roth in that situation, otherwise they would not have the income limits in the first place. If your work has a 401k plan that you contribute to on a pre-tax basis, I would check with them, and/or your companies 401k administrator, to see if they allow partial rollovers into a traditional IRA. If so, you can roll over part of your 401K into a traditional IRA while maintaining the pretax amount, and then roll over into a Roth, and pay the tax on that income rolled over. At least, that is how I understand it.
 
Dumb question: How do day traders manage their capital gains? Do they aside a percentage after every sale?
 
you can do it at the end of the year and turbotax has quick export for some things to calculate it for you. but essentially you bought at X price per unit at Y time, you sell at Z price per unit at A time, the difference is what you gained (or lost if you're claiming losses). since it only matters on the sell, the only thing you have to track is the assets sold (and what price you bought it at as well as when you bought it to determine short term or long term capital gains mostly)
 
cfives said:
I would assume that you would get taxed again when converting it to a Roth in that situation, otherwise they would not have the income limits in the first place. If your work has a 401k plan that you contribute to on a pre-tax basis, I would check with them, and/or your companies 401k administrator, to see if they allow partial rollovers into a traditional IRA. If so, you can roll over part of your 401K into a traditional IRA while maintaining the pretax amount, and then roll over into a Roth, and pay the tax on that income rolled over. At least, that is how I understand it.
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My company offers that, and mega back door, but it's on post tax.
I also contribute separately to IRA in my Vanguard, post tax, then roll over to Roth.

I already paid taxes on money I contribute to IRA, so I don't see why I should be paying more taxes on that money to convert. Seems like double dipping to me, but then again it's U.S. tax code we are talking about.
 
Sounds like you would not get taxed again on the post tax contributions, but would get taxed on any pre-tax contributions that you may have made, and any gains, at least according to an article on Nerdwallet that I read. You also can't pick and choose, you get taxed on the ratio of tax deferred, or untaxed, amount in the IRA. That mega backdoor Roth sounds pretty sweet, even though I don't make enough to be able to utilize it.
 
Don't you get some tax benefit from non deductible IRAs, in the sense that a portion or all of the withdrawl is not taxable?
 
Bitcoin passed $28k.

We've seen this before, it seems like it's just a matter of time before some major player's suddenly cash out putting it into freefall...again.
 
If so it better happen before people start gutting basements to make room for mining machines and dreams of early retirements.
 
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